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India’s Continued Focus on Digital Infrastructure Development and Emergence as a Remarkable Power in the Realm of Digital Payments Ecosystem

New Delhi, India has hosted the 18th G20 summit on Sept 9 and Sept 10 with its focus on global digital transformation and improving sustainability to save our Earth.

Background – Focus on Digitalization

New Delhi, India has hosted the 18th G20 summit on Sept 9 and Sept 10. The main agenda was to focus on global digital transformation and improve sustainability to save the earth. The summit was a success, so much so that India launched ‘G20 Digital Innovation Alliance’ (G20-DIA) initiative amongst the G20 countries and nine guest countries to elevate the different sectors across countries. Bharat Mandapam had set up an exhibition to create a Digital India Experience Zone highlighting the existing digital infrastructure, capabilities and related initiatives running successfully in India. India had started onboarding its economy on to the digital systems when it first launched Adhaar i.e. biometric-based digital identity program, along with other supporting apps such as Umang, DigiLocker, Aarogya Setu and others. This was followed by an enormous success of digital payment system popularly known as UPI, that eased out transactions to an extent that Indian population have been roaming across the streets without wallets. India has further created an open network designed to empower easy exchange of goods and services using digital platforms, known as Open Network for Digital Commerce (ONDC). A glimpse of the digital India was presented to the visitors of G20 summit by presenting them a delegate-friendly multilingual app.

With this India ensures to tap not just financial sector but the healthcare, agriculture, education sectors as well and build a Secured Digital Infrastructure, and Circular Economy. India relies on Digital public infrastructure (DPI), a resilient architecture that can be leveraged by both public and private organizations. Improve digital literacy, reduce gender divide, and empower women in the digital economy. India has also shown how it will use Artificial Intelligence to improve inclusivity, transparency, and security in digital systems.

UPI-powered revolution in digital payments in India, and for the world in future

India is currently witnessing a digital payments revolution, with $3 trillion worth digital payments in 2022, which is expected to reach $10 trillion by 2026. This is propelled by the consolidated effects of its various digital initiatives including the most prominent ones like Aadhaar digital ID and UPI (Unified Payments Interface). Use of Fintech apps like GooglePay, PhonePe or Paytm have grown phenomenally in India. This has resulted in India accounting for 40% of all global real-time digital payments.

During the G20 summit in New Delhi, around 1000 foreign delegates were provided with Rs. 500 to 1000 in UPI wallets to enable them to experience UPI transactions directly. They could use this service without the requirement of having any bank account in India, through the UPI One World digital wallet launched by the RBI (Reserve Bank of India) and the NPCI (National Payments Corporation of India) in February 2023.

In fact, the underlaying technology stack facilitating such tremendous growth and adoption of digital payments in India, commonly being called the ‘India Stack’ is being adopted by other countries. Seven countries namely France, Singapore, the UAE, Oman, Nepal, and Bhutan have signed up to adopt and deploy India’s UPI payment framework. In January 2023, India hosted a developer conference for foreign dignitaries, central and state agency officials, and technology developers and implementors, to highlight how the India Stack can be deployed across respective foreign countries. Apart from UPI, two most in-demand digital services are the Digilocker (for digital storage of important documents) and eKYC (electronic ‘know your customer’ system that enables fast and secure adoption of digital initiatives).

The significance of these developments lies in the fact that this stack is built upon India’s advanced and extremely low-cost indigenous technology. This digital stack was rebranded as the ’Digital Public Infrastructure’ or DPI and can be adopted across developed and developing economies, at scale. In the process, India will leverage its mass of advanced technology professionals in deploying the same across willing countries.

What’s Next?

India is uniquely positioned to digitalize its economy and 1.4 billion people, and in playing an instrumental role across countries and regions globally, increasing its influence and global stature. This enables India to harness technology to address gaps related to financial inclusion in the society and propel grass-roots level entrepreneurship and innovation, while aiding digital literacy, social issues related to women’s empowerment and governance delivery, in the process.

How F&S TechVision experts can help in digital transformation

Frost & Sullivan is a leading growth opportunity analytics company that has partnered with corporations, cities, governments, and investor communities over the past 60 years to identify, prioritize, and execute opportunities that power clients toward a future shaped by growth.

Digital transformation is a constant requirement to ensure rapid growth. Frost & Sullivan’s TechVision ICT team is well-placed to support clients’ growth initiatives across emerging technologies.

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